Through its Industrial Development Bond (IDB) Program, the Authority provides loans to certain manufacturers. To qualify, a business must be considered a “small issue manufacturer” under federal tax law—meaning it makes physical goods or changes materials into new products. The business also has to meet specific limits on how much it spends on equipment and facilities.
The Authority can lend up to $2 million per project, with a total program limit of $20 million.
The interest rate on these loans is based on current market rates. It’s set through a competitive bidding process when the Authority raises money by selling its own bonds. The rate the Authority pays on those bonds is the same rate the manufacturer pays on its loan.
For manufacturers that qualify, this program offers a way to finance buildings and equipment with long-term, fixed interest rates that are tax-exempt, which can help lower borrowing costs.
The IDB has been assigned a rating of "AA-" by Standard & Poors Rating Group.